700 points to rent out

[Guest]

hi all, only had our DVC for 2 years and want to rent them out has anyone rented out before, looking at the rental sites they are mentioning that they have to withhold 30% of the 'sale' - not sure what to do/proceed

thanks

[fudgie]

I've used David's to rent out my points. They pay you 70% of the money when you make the booking and send them confirmation. The remaining 30% is paid when the renter checks in. They take a commission from the renter - for example they will pay you $13 per point but charge the renter $15.

I've done 3 rentals with them and everything has been very straightforward and money is paid via paypal. With the poor exchange rate just now, it makes good sense to use an agency where you're getting paid in US $ rather than renting points out on here for payment in sterling

[Guest]

thank you for your response, maybe i will go back to them and ask them to explain the following to me as i got pretty much the same response from both dvc-rental.com and DVC rental store...

"The process is a bit different for overseas/non US members. If you'd like us to rent your points, I would need to withhold 30% of your gross payment for tax purposes. If you choose to, you can fill out a W7 and send it to the IRS for an "International Tax Identification Number". Once you have that, you can file a 1040-NR tax return with the IRS at the end of the year to claim a refund (if one is applicable). The IRS sees it that you're doing business in the US and requires us to withhold the 30% international tax in advance. Trust me, I wish we didn't have to do this but the IRS can always come after me for the money if we don't do everything legally"

any thoughts or comments?

[BarryandCaron]

Maybe it's because you have such a large number of points to rent out.

We were taxed on the sale of our contract but got it back 6 weeks later. We used a US tax specialist, she got us our tax numbers and refund.

[fudgie]

Originally Posted by DonaldDuckSteve

thank you for your response, maybe i will go back to them and ask them to explain the following to me as i got pretty much the same response from both dvc-rental.com and DVC rental store...

"The process is a bit different for overseas/non US members. If you'd like us to rent your points, I would need to withhold 30% of your gross payment for tax purposes. If you choose to, you can fill out a W7 and send it to the IRS for an "International Tax Identification Number". Once you have that, you can file a 1040-NR tax return with the IRS at the end of the year to claim a refund (if one is applicable). The IRS sees it that you're doing business in the US and requires us to withhold the 30% international tax in advance. Trust me, I wish we didn't have to do this but the IRS can always come after me for the money if we don't do everything legally"

any thoughts or comments?

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David's is based in Ontario, Canada therefore I assume isn't subject to American taxation legislation? I've never had funds withheld nor had to provide any documentation to US tax authorities.

[vhm672]

Just a heads up but you have to be a pass holder to rent through the Dibb. Not expensive to register you can then add your points to the listings in the points to rent thread.

[YorkshireT]

You are not using David's. He is in Canada and doesn't hold back tax.